BTCS Reports 2024 Q3 Results

134% quarterly year-over-year revenue growth

Silver Spring, MD, Nov. 14, 2024 (GLOBE NEWSWIRE) — BTCS Inc. (Nasdaq: BTCS) (“BTCS” or the “Company”), a blockchain technology-focused company, announced its results for the third quarter ended September 30, 2024 (“Q3 2024”).

Third Quarter 2024 Financial Highlights

  • Quarterly Revenue: Revenue for Q3 2024 was $0.7 million, reflecting a strong 32% increase from Q2 2024 and a significant 134% rise from Q3 2023.
  • Year-to-Date Revenue: For the nine months ended September 30, 2024, revenue exceeded $1.7 million, a robust 73% increase compared to the same period in 2023.
  • Gross Margin: Gross margins for the nine months ended September 30, 2024, stood at 50%, down from 72% in the comparable 2023 period, primarily due to increased operational expenses related to our Builder+ operations that have driven revenue growth.
  • Quarterly Net Loss: Net loss for Q3 2024 was $9.0 million, or $0.56 per share, compared to a net loss of $3.3 million, or $0.23 per share, in Q3 2023, primarily driven by the decrease in the value of our cryptocurrency assets.
  • Year-to-Date Net Income/Loss: For the nine months ended September 30, 2024, BTCS reported a net loss of $3.5 million, or $0.22 per share, compared to net income of $0.5 million, or $0.04 per share, for the same period in 2023.
  • Cash & Cryptocurrency Holdings: BTCS held $26.0 million in cash and cryptocurrency assets as of September 30, 2024, representing a 51% year-over-year increase. As of November 12, 2024, our cash and crypto assets have increased by 27% to $33.0 million.

Management Commentary

We are pleased to report another quarter of strong growth, highlighted by the continued expansion and success of our Builder+ operations. Builder+ has rapidly become a cornerstone of BTCS’s revenue generation strategy, driving a double digit quarter-over-quarter increases in revenue through efficient and scalable block-building activities within the Ethereum ecosystem. By leveraging advanced algorithms and optimizing block construction, Builder+ enables us to maximize gas fee revenue. We are confident that the innovative foundation we’ve laid through Builder+ positions BTCS at the forefront of Ethereum’s evolving landscape.

In addition to our internal advancements, the broader regulatory and market landscape appears to be become more favourable for the blockchain industry. With the recent U.S. Presidential Election ushering in a more crypto-friendly administration, led by President Trump, we are optimistic about the potential for a supportive regulatory environment that fosters innovation and growth in blockchain technology. This positive shift aligns with our strategic goals and will likely open new opportunities for blockchain infrastructure expansion, both on Ethereum and beyond.

Our long-term vision is to drive both innovation and an accelerating growth trajectory, driving increased value for our shareholders..

About BTCS:

BTCS Inc. (Nasdaq: BTCS) is a U.S.-based blockchain infrastructure technology company currently focused on driving scalable revenue growth through its Ethereum blockchain infrastructure operations. BTCS has honed its expertise in Ethereum network operations, particularly in block building and validator node management. Its branded block-building operation, Builder+, leverages advanced algorithms to optimize block construction for on-chain validation, thus maximizing gas fee revenues. BTCS also supports other blockchain networks by operating validator nodes and staking its crypto assets across multiple proof-of-stake networks, allowing crypto holders to delegate assets to BTCS-managed nodes. In addition, the Company has developed ChainQ, an AI-powered blockchain data analytics platform, and StakeSeeker, a portfolio monitoring tool, both of which enhance user access and engagement within the blockchain ecosystem. Committed to innovation and adaptability, BTCS is strategically positioned to expand its blockchain operations and infrastructure beyond Ethereum as the ecosystem evolves. For more information visit: www.btcs.com.

Forward-Looking Statements:

Certain statements in this press release constitute “forward-looking statements” within the meaning of the federal securities laws, including statements regarding maximizing gas fee revenue, potential for blockchain technology, and opportunities for blockchain infrastructure expansion. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon assumptions and are subject to various risks and uncertainties, including without limitation regulatory issues, the new administration’s failure to favor crypto landscape as much as expected, unexpected issues with Builder+, unexpected issues with ChainQ, and the reluctance of validators to try or utilize our Builder+ product, as well as risks set forth in the Company’s filings with the Securities and Exchange Commission including its Form 10-K for the year ended December 31, 2023 which was filed on March 21, 2024. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements, whether as a result of new information, future events, or otherwise, except as required by law.

Investor Relations:
ir@btcs.com

Financials

The tables below are derived from the Company’s financial statements included in its Form 10-Q filed on November 13, 2024, with the Securities and Exchange Commission. Please refer to the Form 10-Q for complete financial statements and further information regarding the Company’s results of operations and financial condition relating to the fiscal quarter ended September 30, 2024 and 2023. Please also refer to the Company’s Form 10-K for a discussion of risk factors applicable to the Company and its business.

BTCS Inc.
Balance Sheets

    September 30,     December 31,  
    2024     2023  
      (Unaudited)          
Assets:                
Current assets:                
Cash and cash equivalents   $ 254,466     $ 1,458,327  
Stablecoins     40,397       21,044  
Crypto assets     430,483       302,783  
Staked crypto assets     25,317,039       24,900,146  
Prepaid compensation     288,309        
Prepaid expenses     96,439       62,461  
Receivable for capital shares sold           291,440  
Total current assets     26,427,133       27,036,201  
                 
Other assets:                
Investments, at value (Cost $100,000)     100,000       100,000  
Property and equipment, net     6,015       10,490  
Total other assets     106,015       110,490  
                 
Total Assets   $ 26,533,148     $ 27,146,691  
                 
Liabilities and Stockholders’ Equity:                
Accounts payable and accrued expenses   $ 266,827     $ 55,058  
Accrued compensation     1,052,647       712,092  
Warrant liabilities     17,813       213,750  
Total current liabilities     1,337,287       980,900  
                 
Stockholders’ equity:                
Preferred stock: 20,000,000 shares authorized at $0.001 par value:            
Series V preferred stock: 14,567,829 and 14,567,829 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively     2,563,938       2,563,938  
                 
Common stock, 975,000,000 shares authorized at $0.001 par value, 16,555,221 and 15,320,281 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively     16,555       15,322  
Additional paid-in capital     164,803,541       162,263,634  
Accumulated deficit     (142,188,173 )     (138,677,103 )
Total stockholders’ equity     25,195,861       26,165,791  
                 
Total Liabilities and Stockholders’ Equity   26,533,148     $ 27,146,691  


BTCS Inc.
Statements of Operations
(Unaudited)

    For the Three Months Ended     For the Nine Months Ended  
    September 30,     September 30,  
    2024     2023     2024     2023  
Revenues                        
Blockchain infrastructure revenues (net of fees)   $ 739,157     $ 316,242     $ 1,751,735     $ 1,013,503  
Total revenues     739,157       316,242       1,751,735       1,013,503  
                                 
Cost of revenues                                
Blockchain infrastructure costs     543,308       83,100       872,781       278,726  
Gross profit     195,849       233,142       878,954       734,777  
                                 
Operating expenses:                                
General and administrative   $ 586,926     $ 283,239       1,613,481     $ 1,510,637  
Research and development     213,332       148,525       523,658       531,053  
Compensation and related expenses     942,860       409,960       2,274,130       1,450,546  
Marketing     55,611       2,155       141,690       11,121  
Realized (gains) losses on crypto asset transactions     121,964       43,791       (176,050 )     604,270  
Total operating expenses     1,920,693       887,670       4,376,909       4,107,627  
                                 
Other income (expenses):                                
Change in unrealized appreciation (depreciation) on crypto assets     (7,396,380 )     (2,914,029 )     (237,052 )     3,734,213  
Change in fair value of warrant liabilities     53,437       285,000       195,937       142,500  
Other income     28,000             28,000        
Total other income (expenses)     (7,314,943 )     (2,629,029 )     (13,115 )     3,876,713  
                                 
Net income (loss)   $ (9,039,787 )   $ (3,283,557 )   $ (3,511,070 )   $ 503,863  
                                 
Basic net income (loss) per share attributable to common stockholders   $ (0.56 )   $ (0.23 )   $ (0.22 )   $ 0.04  
Diluted net income (loss) per share attributable to common stockholders   $ (0.56 )   $ (0.23 )   $ (0.22 )   $ 0.03  
                                 
Basic weighted average number of common shares outstanding     16,158,032       14,317,750       15,870,343       13,957,097  
Diluted weighted average number of common shares outstanding, basic and diluted     16,158,032       14,317,750       15,870,343       17,437,809  


BTCS Inc.
Statements of Cash Flows
(Unaudited)

    For the Nine Months Ended  
    September 30,  
    2024     2023  
Net Cash flows used from operating activities:                
Net income (loss)   $ (3,511,070 )   $ 503,863  
Adjustments to reconcile net income to net cash used in operating activities:                
Depreciation expense     4,475       3,521  
Stock-based compensation     1,887,800       1,057,512  
Blockchain infrastructure revenue     (1,751,735 )     (1,013,503 )
Builder payments (non-cash)     615,035        
Change in fair value of warrant liabilities     (195,937 )     (142,500 )
Realized (gains) losses on crypto assets transactions     (176,050 )     604,270  
Change in unrealized (appreciation) depreciation on crypto assets     237,052       (3,734,213 )
Changes in operating assets and liabilities:                
Stablecoins     (19,353 )     (29,794 )
Prepaid expenses and other current assets     (322,287 )     16,298  
Receivable for capital shares sold     291,440          
Accounts payable and accrued expenses     211,769       15,932  
Accrued compensation     340,555       25,209  
Net cash used in operating activities     (2,388,306 )     (2,693,405 )
                 
Cash flows from investing activities:                
Purchase of productive crypto assets for validating     (31,300 )     (1,804,482 )
Sale of productive crypto assets     562,405       1,994,890  
Purchase of property and equipment           (5,276 )
Sale of property and equipment           905  
Net cash provided by (used in) investing activities     531,105       186,037  
                 
Cash flow from financing activities:                
Net proceeds from issuance common stock/ At-the-market offering     653,340       1,113,818  
Net cash provided by financing activities     653,340       1,113,818  
                 
Net (decrease)/increase in cash     (1,203,861 )     (1,393,550 )
Cash, beginning of period     1,458,327       2,146,783  
Cash, end of period   $ 254,466     $ 753,233  
                 
Supplemental disclosure of non-cash financing and investing activities:                
Series V Preferred Stock Distribution   $     $ 2,559,533  

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